GameStop Reports Record-High Sales for 2010

[JeanLuc761]

-snip-
1) I think the argument is against all retailers that buy used goods very cheaply and sell them at very high prices; they are basically only putting money into their own pockets. Are these retailers really worth supporting? I'm sure that people who utilize their Library, Netflix, Gamefly, Steam etc. would say no, and I'd be inclined to agree with them. Retail is, by its very nature, inefficient. And because waste is one of the worst consequences of capitalism, I'd like to think videogames can help lead the way in making the world economy more efficient. And, I'm sure, this also holds true for most people on the Escapist.

2) But perhaps most simply, you're on a website frequented by people who love videogames. I'm sure there are many videogame studios that could have really used a chunk that 2.47 billion, and that many more great videogames could have been made if they had access to it. If that's the argument, why disagree?

I can understand that argument but the primary issue with it, especially with Gamestop is that used sales are where the company makes profit. Gamestop can't make profit on new games because that money goes to the publisher/developer. While the difference between trade-in value and selling value is often large, there's a reason for it. Beyond that, it's up to the customer to choose a good time to do their trades. A few weeks ago, Gamestop had a 50% trade in bonus (60% if you have a PowerUp Pro card) and people were making obscene amounts in trade-in.

2) Maybe I should expand my point of view a little. I'm not trying to rip developers off, far from it. My only real problem with this whole debate is that some publishers are acting like video games are the exception to...well, basically all other products and that "second sales" should not be allowed. Saying that buying a used game is equivalent to piracy is just plain excessive.

 

[mew4ever23]

Well, this past year wasn't exactly hard for sales. We had the PS Move, The Kinect, WoW Cataclysm, and plenty of other big releases.. I'm not really surprised that sales jumped.

 

[SanguineSymphony]

Used game sales totaled $2.47 billion

so what part of that went to the developers who made the games? just curious.

The same amount when people sell used games on e-bay.

Don't forget Craigslist.

I don't see how they're expanding their used game business when just yesterday they were saying they no longer handle GBA games. I am glad I picked up Metroid Fusion, Castlevania: Circle of the Moon, Castlevania: Harmony of Dissonance and Castlevania: Aria of Sorrow last year.

 

[constantcompile]

I can understand that argument but the primary issue with it, especially with Gamestop is that used sales are where the company makes profit. Gamestop can't make profit on new games because that money goes to the publisher/developer. While the difference between trade-in value and selling value is often large, there's a reason for it.

Even with this in mind, the bottom line is that every extra dollar spent bringing the product from the developer to the customer is one less dollar for the developer. How many games have you looked forward to that were canceled due to the developing company having to tighten its belt? How many people have overpaid for low-quality videogames? Where middlemen are concerned, the consequences outweigh the benefits for the gaming industry, even if there is a reason for it.

2) Maybe I should expand my point of view a little. I'm not trying to rip developers off, far from it. My only real problem with this whole debate is that some publishers are acting like video games are the exception to...well, basically all other products and that "second sales" should not be allowed. Saying that buying a used game is equivalent to piracy is just plain excessive.

In, say, South Korea, where modded Xbox 360s and pirated games are sold by small businesses, what is the real difference between buying a used game and buying a pirated game? You tell me. Say the small businesses has to make up for their losses in selling new games by selling pirated games at insane discounts - where's the foul? Whatever money the customer loses by not being able to resell their games to the business is made up for by their savings in buying pirated games.

In terms of price, at least in the USA, used videogames are the exception - the markup is insane. I don't think that they should be disallowed, but I think that minimal-overhead digital distribution is the way of the future, and that the future can't come fast enough. There's more money for the developers, and less cost for me - especially during Steam's insane sales.

 

[VGC USpartan VS]

Used game sales totaled $2.47 billion

so what part of that went to the developers who made the games? just curious.

Y'know EA did that pay for online thing to make up for that and now I hate them. BUT, since I hate Activision SOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO much more, (no sarcasm) I can stand them.

 

[DTWolfwood]

Used game sales totaled $2.47 billion

so what part of that went to the developers who made the games? just curious.

The same amount when people sell used games on e-bay.

Don't forget Craigslist.

I don't see how they're expanding their used game business when just yesterday they were saying they no longer handle GBA games. I am glad I picked up Metroid Fusion, Castlevania: Circle of the Moon, Castlevania: Harmony of Dissonance and Castlevania: Aria of Sorrow last year.

both ebay and craiglist buy the product off of you for pennies on the dollar and sell them off at huge profits to themselves, and not simply host your listings for a small fee?

the individual doesn't try to sell his used product to earn a profit (if he can't get away with it). its to recoup the price of admission.

I get irritated because the videogame industry makes its customers out to be the bad guys and punishes us while doing nothing about their IP being sold used willy-nilly through Gamestop without seeing a cent from it. So how do they counter this? they nickle and dime their paying customers and hold content back as "DLC" <.<

their middle man is making a killing off of them and instead of dealing with it, they skip over it and punch the buyers in the face.

there is a simple fix for this, slap Gamestop with a licensing fee to sell IP's used. Gamestop can sell used games without looking like a crook. Perhaps the industry would sell me a full game at launch :O oh one can dream.

edit:

so what part of that went to the developers who made the games? just curious.

read bold XD

I wouldnt be so bitchy about Gamestops used game market if it wasn't for the industry stupidly doing nothing about it. Instead they saddle their paying customers with the money they lost through Gamestop by parceling their game.

 

[thepyrethatburns]

You quoted the wrong thing from me. However, I would go out on a limb and say that, even if Gamestop disappeared overnight, DLC would not. It's a new revenue stream that the game companies are feasting off of even as they play the role of the poor martyr who are unfairly victimized by used game sales.

As has already been said, every industry on the planet that sells non-consumable tangibles has dealt with the used market. It is a sign of the immaturity of the game industry that they refuse to do so.

there is a simple fix for this, slap Gamestop with a licensing fee to sell IP's used. Gamestop can sell used games without looking like a crook.

Which would work up to the point that Gamestop refused to sell any of that company's games OR hit them with a lawsuit. I'm going to go out on a limb without actually looking this up and say that, in the centuries before video games hit the market, someone probably already tried to get licensing fees from second-hand merchants. The fact that this is not a widespread practice tells me that it didn't work then so it probably wouldn't work now. Even if it did work, Gamestop would just jack up their selling point to accomodate for the licensing fee so the customer would get screwed worse.

the individual doesn't try to sell his used product to earn a profit (if he can't get away with it).

And what if they can get away with it? Just because they are unable to pull a Gamestop (and you have no idea as a buyer whether the person bought the game for $10 and is selling it for $35) doesn't make them better or worse than Gamestop.

Also, through the wonders of legal precedent, if game companies were able to slap a licensing fee on Gamestop, do you really think that they won't do the same to resellers on Ebay or Craigslist?

http://arstechnica.com/tech-policy/news/2009/10/autocad-resale-ruling-a-messy-win-for-first-sale-doctrine.ars

Magic Eightball says "no".

Look, there's a much simpler fix which doesn't involve trying to impose your will on others.

Don't buy or sell at Gamestop. It is honestly that simple. If their practices bother you so, buy somewhere else.

 

[SanguineSymphony]

Snip

What EXACTLY is stopping anyone from using CL or Ebay again? If the game I am getting rid of is as old as dirt and not going to turn over quickly I use GS. If its something that just came out or is worth a bit on the used market I use CL/Ebay...

I use GS' used market to get games that I don't feel like bothering with online. Those are generally games that have been OOP for at least 3 years or more.